CONFIDENTIAL
6. What we are now proposing is a more realistic definition
of what the practice should be, while continuing to highlight the political sensitivities involved. It is
invisaged that in future, government-funded regional
development organisations would be free to pursue normal
promotional activities such as mounting inward investment
exhibitions, arranging seminars, holding receptions and
placing advertisements in the local press, provided that
they take care to avoid any political overtones and consult
the IBB in advance about their promotional initiatives. As
far as Ministerial visits are concerned, each case would
have to be judged on its merits. But it is likely that we
would continue to recommend that Cabinet Ministers should
not get involved in high-profile inward investment
activities.
Argument
The case for change
Since the original guidelines were drawn up in 1985, the situation has changed in a number of ways:
7.
(a) The Hong Kong Government have indicated that they no
longer see any objection to normal promotional activities
provided care is taken to avoid giving the impression of
seeking to exploit concerns in the territory about the
transfer of soverignty in 1997.
(b) There has been a sharp increase in investment flows both
in and out of Hong Kong, but relatively little of the
outward investment has come to the UK. A number of other
countries, including some of our EC partners, have been
making vigorous efforts to attract this investment. Our
self-imposed restrictions have therefore placed us at an increasing disadvantage.
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